C-NLOPB turns down Shoal Point Energy well application

The Canada-Newfoundland and Labrador Offshore Petroleum Board has declined an application by Shoal Point Energy to carry out drilling at Shoal Point on the Port au Port Peninsula.

The decision came down at a C-NLOPB board meeting held on July 25; however, the board is not yet giving its reasons for declining the application. Sean Kelly, a board spokesperson, said the board will issue written reasons for its decision in due course and forward that document to the company. In a prepared release posted on Shoal Point Energy’s website on July 26, the company said it is currently in diligent pursuit of well 3K-39, which was suspended at Shoal Point on July 12, 2012 with the intention of re-entering the well to perform hydraulic fracturing operations. However, hydraulic fracturing has since been put under a moratorium by the Government of Newfoundland and Labrador, which remains in effect today. The company said in its release the application under Section 70 (3) of the Accord Act was to change the diligent pursuit of 3K-39 to re-entry and testing of well 2K-39, which is a twin well of 3K-39. The intention was to re-enter 2K-39, sidetrack and drill a fresh, undamaged hole and attempt a completion without using hydraulic fracturing. “We are disappointed by this outcome (application declined),” Mark Jarvis, chief executive officer of Shoal Point Energy said in the release. “We await the written reasons for the board’s decision.”